MCO 2.0 Survival Guide: How To Be Better Prepared This Time
- By CompareHero.my
- January 14, 2021
Most of us are living under tighter COVID-19 restrictions again, as a second MCO has been implemented in Kuala Lumpur, Selangor and certain parts of Malaysia. To help ensure that you’re better prepared this time around, here’s our survival guide.
The first Movement Control Order (MCO) in March 2020 taught us the importance of planning for life’s uncertainties. Now more than ever, amidst MCO 2.0, rising COVID-19 cases, reduced incomes and job uncertainty, we need to know how to safeguard our well-being and finances in the new norm.
Contents
Adapting to the MCO 2.0 SOPs
As the relevant authorities strive to contain the pandemic, we can do our part as well by following the latest standard operating procedures:
Areas: Penang, Selangor, Kuala Lumpur, Putrajaya, Labuan, Melaka, Johor and Sabah
Duration: January 13 to January 26
- No interstate and interdistrict travels.
- No social gatherings – such as weddings, religious processions, meetings and group sports.
- Roadblocks will be mounted. If you’re travelling in a vehicle, your movements should be limited within a 10km radius of your home.
- Only two people per household are allowed to head out to purchase groceries at nearby supermarkets/grocery stores.
- Only two people are allowed in a vehicle.
- Anyone who violates these rulings will be subjected to a maximum fine of RM1,000 under the Prevention and Control of Infectious Diseases Act 1988 (Act 342).
- Five essential economic sectors are allowed to operate: manufacturing, construction, services, trade and distributions as well as plantations and commodities.
- Practise physical distancing at all times.
- Non-essential services staff should work from home.
- Eateries and hawker stalls may operate but only take-aways are allowed.
- Food delivery services are allowed.
- Supermarkets, healthcare services (including clinics, hospitals and pharmacies) and banks are allowed to operate with strict SOP compliance. Always wear masks and use hand sanitisers frequently.
- Stay at home if there is no immediate or urgent need to head out.
- Students who are due to sit for the SPM are allowed to attend school with strict SOP. The Education Ministry will detail this SOP.
Now that you’re aware of the SOPs, let’s see what other protective measures you and your family can practise in order to stay safe.
Stock up on the necessities (but don’t panic buy!)
According to a recent article by Malay Mail, the Ministry of Domestic Trade and Consumer Affairs has assured the public that there is a sufficient supply of goods in all retail sectors, so there’s no need to panic buy.
Besides, certain foods like fresh milk, bread, vegetables and fruits have a limited shelf life. They are more likely to spoil within days, so if you have bought too much food for your family, that’s money wasted.
Instead, you should purchase a moderate amount of long-lasting, nutritious foods such as beans, nuts, dried fruits and vegetables, granola bars, whole grains and preservative-free canned goods. This way, you’ll be reducing food waste and your loved ones will have something to eat on the days where it’s inconvenient to cook or use food delivery services.
The same moderate approach should be applied when you’re stocking up on other essentials like toiletries, pharmaceutical products and household maintenance items. Getting these items from convenience stores and pharmacies is so easy now as you can always order them via GrabMart or foodpanda shops.
The Ministry of Domestic Trade and Consumer Affairs has assured the public that there is a sufficient supply of goods, so there’s no need to panic buy.
Create a crisis budget
Creating a household budget for MCO 2.0 can help ensure that your income is sufficient to support your family as well as increase your savings in the new norm. With budgeting apps like Mint and Goodbudget, it’ll be easier to keep track of your daily, weekly and monthly spending. These apps are able to show what your balance will be once all your bills have been paid.
Speaking of bills, with everybody at home more, your electricity and water bills could be higher compared to the pre-MCO period. However, you’ll be spending less on car petrol and other transportation costs if you are working from home. Use the money you have saved from reduced transportation costs to accommodate the higher electricity and water bills.
Additionally, more people are using cashless payment these days in order to minimise cash usage and physical contact. So if you are using e-wallets such as Touch ‘n Go eWallet, GrabPay and Boost to shop, be sure to include these expenses in your budget.
You should also remember to allocate a particular sum for your savings and emergency fund. Even if you are just saving the money you would usually spend on petrol each week, it all builds up – that RM20 you are saving weekly will amount to RM1,000 in a year.
Related: Ultimate Guide To E-Wallet In Malaysia 2021 – Which Should You Get?
Use your emergency fund only if necessary
COVID-19 has taught us how vital it is to set up an emergency fund. Faced with retrenchments or pay cuts, many of us had to dip into our savings to cover monthly expenses. In times like these, having an emergency fund is valuable.
As the name suggests, your emergency fund is an amount of money which is kept aside for an unexpected crisis. You ought to have a financial buffer that will last you for at least six months in case you suddenly lose your source of income.
It’s also important to figure out what counts as a true emergency, as you should not simply use up your emergency fund to pay your way out of any unexpected situations. You can start planning your emergency fund usage by differentiating between your needs and wants in life.
For instance, if your TV breaks down, do you need a new big flatscreen? Probably not, but if the refrigerator stops functioning, you’ll definitely need to buy a new one as your food will spoil without it. Once you have established a clear distinction between essential spending and splurging unnecessarily for luxuries, you’ll be able to better manage your emergency fund.
Create a quarantine routine
As most of us are staying indoors more frequently, it’s important to set up a daily routine and stick to it. You should allocate an adequate amount of time for work, meals, caring for your kids, leisure activities, exercise and sleep. By following this routine each day, you’ll be able to become more efficient.
Without a routine, you could end up making hundreds of decisions in a single day, and the stress and anxiety will add up. These questions will constantly be popping up in your mind:
”Should I go grocery shopping today or wait until tomorrow?”
“What time should I start making lunch?”
“Is it time for bed, or should I finish watching these series?”
You can take the pressure off by listing down the things you need to complete daily (according to how urgent they are). Then you can work your way through the list. This added structure and stability will be beneficial for both you and your family. In fact, if you are a parent, you should help your kids establish their daily routines as well.
The COVID-19 pandemic has also disrupted children’s schooling and daily routines. According to Malay Mail, the Education Ministry has announced that only students taking national examinations such as Sijil Pelajaran Malaysia (SPM) are allowed to physically attend school during the MCO, while students from Standard One to Form Four will undergo online learning.
So for most kids, the new normal has been a roller coaster ride of uncertainties filled with short periods of attending school and a mixture of online learning sessions. You can help make your children’s prolonged stay at home a productive and comfortable experience, as you’ll have more opportunities to spend quality time with them. Do help out with their school work if you can. Solving mathematical equations and completing school essays together can be fun and enriching for both of you! Your presence will also be reassuring for the kids as they navigate through distance learning.
Besides school work, leisure time with your children can also be equally enjoyable. Join them when they are watching movies, reading and playing video games. These activities can strengthen the bond between parents and children.
Additionally, you should make sure that your kids study, play, eat and sleep according to a regular schedule. With just a little extra planning like this, everybody in your household can enjoy a hassle-free, fulfilling lifestyle – even during the MCO.
By following a daily routine, your family can enjoy a hassle-free, fulfilling lifestyle – even during the MCO.
Related: Your Child Will Thank You For This – 9 Financial Moves Every Parent Should Make
Prioritise paying down high-interest debt
Rising unemployment and pay cuts might have left most of us running low on cash as we enter the second round of MCO. With limited funds, you may not be able to service all your debts at once, especially if you have credit card bills, mortgages, car loans and student debts.
So it’s important to figure out which debt you should pay off first. Under these circumstances, we highly recommend that you clear your debts with the highest interest rates ASAP, because the longer it takes for you to pay it off, the more you’ll have to pay over time.
So if you have accumulated debts like those from credit cards, where banks usually charge an average of 11% to 18% of interest on outstanding balances, you ought to focus your financial resources on settling these bills first.
You can start by paying off the credit card bill with the highest interest rates while also making the minimum monthly payment for your other debts – as you’ll want to avoid incurring additional fees. Once you are done clearing a particular debt, you should repeat the same payment process with your remaining arrears.
The faster you become debt-free, the sooner you can start working towards other financial goals – like contributing to your emergency fund and adjusting your household budget so that you’re financially prepared for any pandemic-induced lifestyle changes. We believe you’ll get there one day!
Related: What Happens If You Can’t Pay Your Loans In Malaysia Post-MCO (And How To Fix This Fast)
Keep calm – never sell stocks in a panic
As we brace ourselves for further economic uncertainties, you might feel it’s counterintuitive to continue channeling your money into the stock market. However, as an investor, it’s best to stick to the goals, objectives and time horizon that you have established for your investment plan. Regardless of whether you originally planned to invest for the short-term or long-term, you should continue with your original plan, and avoid joining the crowd of investors who sell or buy in panic.
Additionally, according to Forbes, if your portfolio has been designed properly, you will be able to withstand a drop in the market. In the same article, its finance contributor Eric Brotman also emphasized that investors should take advantage of the current state of the stock market.
“If you’re older and retired, you should have enough money for the income that you need. If you’re young, market drops are a great opportunity to buy those high-quality securities while they’re basically on the clearance rack. What panic selling really does to long-term savings is to destroy it. It’s one of the biggest mistakes investors can make,“ he emphasized.
We hope you’ll find this guide useful as you continue adapting to life in the new normal as well as the MCO. Keep your chin up and stay safe!
Related: 8 Side Jobs for Malaysians to Earn Extra Money During CMCO
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Streaming Services In Malaysia: Compare Packages And Pricing
- By CompareHero.my
- January 13, 2021
With many streaming services available in Malaysia, which one should you consider and subscribe to as a user during the pandemic? Here’s a full comparison between six different streaming platforms to help you decide.
The COVID-19 pandemic has caused massive changes to our lifestyle as it has altered how we work, learn and interact.
We turn to online social platforms to stay connected and entertained on a day to day basis. A study by the Malaysian Digital Association (MDA) reported that popular streaming service, Netflix had a 195% growth in traffic in the third week of March 2020 – the same week when the first Movement Control Order (MCO) was enforced in Malaysia.
Thanks to streaming services such as Netflix, iflix, Viu and more, you can watch TV series, movies, documentaries and other types of content at the comfort of your own home. You may be surprised by the number of streaming services that are available in Malaysia, but which one comes with the best features and suits your entertainment budget during this lockdown period?
We compared the price, overall package and features of six streaming service options in Malaysia to help you make the right choice and add more fun to your quarantine days.
Contents
1. Netflix
Netflix always updates users whenever they release new original productions; this special feature is definitely something to look forward to as a user.
Netflix is generally considered the default streaming service platform for many. Its seemingly high favourability among users can be associated with its frequently updated “Coming Soon” section, which offers both previews and teasers of upcoming new content releases. Netflix users also get to enjoy unlimited streaming of TV shows, movies and original series for a subscription fee as low as RM17 per month.
Monthly subscription fee: RM17 (Mobile), RM35 (Basic), RM45 (Standard), RM55 (Premium)
Check out more details on the plans and pricing here. (Image source: Netflix)
Free trial: Not available
Type of content: TV series, movies, documentaries, kids’ shows, stand-up comedy specials, anime, and international programming
Platforms and devices: Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, Apple TV, and Smart TVs
Simultaneous streams: One to four devices
Features and benefits:
- Ad-free
- User-friendly interface
- Original programmes
- Download and watch the content offline
- Affordable
- Parental controls
2. iflix
If you’re a fan of local content, iflix, compared to other platforms, offers more of that variety for free!
iflix brands itself as the world’s leading entertainment service for emerging markets. This streaming service is best known for Asian content, so if you enjoy watching Chinese, Malay, Filipino, Tamil and Korean shows and movies, iflix provides a wide array of options for you to choose from.
Monthly subscription fee: RM10 (VIP subscription)
| Free user | Some shows and movies on iflix are unlocked (titles that have no lock or VIP symbol), and users can stream for free without an account or subscription. |
| VIP user | Ad-free and full access to the entire library of shows and movies, get complimentary VIP access through promos, surveys and vouchers. |
Free trial: 30-day trial
Type of content: TV series, movies and kids’ shows
Platforms and devices: Android, Apple, laptop, desktop, mobile browser, and selected smart TVs – Samsung, LG, and Panasonic Smart TVs or on any other TV using Chromecast or HDMI.
Simultaneous streams: Two devices
Features:
- No sign ups required for free content
- Ad-free for VIP users
- Cheap VIP access
- Original programs
- Download and watch the content offline
- “Kids” section content available
3. Viu
On Viu, you get access to trending Korean dramas and shows (with subs) just eight hours after the original telecast!
Viu is an online video streaming service that brings you the latest Korean dramas and variety shows, Japanese dramas and animation, Chinese and Taiwanese dramas for free. Here you can enjoy the best of premium Asian entertainment!
Monthly subscription fee: RM10 (VIU premium access)
Free trial: 30-day free trial
Type of content: TV series, variety shows, and movies
Platforms and devices: Android, Apple, laptop, desktop, mobile browser, and smart TVs
Simultaneous streams: Five devices
Features:
- No sign ups required for free content
- Download and watch the content offline
- Cheap subscription fee
- Access to all dramas, variety shows, movies and kids’ animations
- Release eight hours after the original telecast
4. Dimsum
Besides entertainment, Dimsum also provides an e-learning section on various subjects for pre, primary and secondary school students.
Dimsum Entertainment is a streaming service that offers various Asian content including movies, dramas, kids’ shows, news, travel and lifestyle content. Its e-learning section has educational content specifically for pre-school, primary school and secondary school students.
The educational subjects covered include beginners’ words, numbers and greetings for preschool kids; Mathematics, Mandarin, Science, English and Bahasa Melayu for primary school students; as well as English for Science and Technology, Additional Mathematics, Biology, Chemistry and Physics for secondary school students.
Since online learning has been on the rise, parents, students and teachers can take advantage of the educational section featured on this platform for an affordable price.
Monthly subscription fee: RM8 (VIP) and RM13.90 (VIP Family)
| Free | Watch with ads, single device access, no download feature. |
| VIP | Watch without ads, two device access, download feature available. |
| VIP Family | Watch without ads, five device access, download feature available. |
Free trial: Not available
Type of content: TV series, dramas, movies, documentaries, kids’ shows and education
Platforms and devices: Android, Apple, laptop, desktop, mobile browser, and smart TVs
Simultaneous streams: Two to five devices
Features:
- Sign up and watch for free
- Upgrade to VIP for premium access
- Download and watch the content offline for VIP users
- Parental controls
5. Apple TV+
Besides offering an extensive list of popular TV shows and movies, Apple TV+ also features its own original programmes.
Apple TV+ is Apple’s subscription video streaming service that features Apple’s original TV shows and movies. Apple TV+ is available in more than 100 countries and is also part of Apple’s family-sharing feature, which allows you to share a plan with up to five family members. Any new iPhone, iPad, iPod Touch, Apple TV, or MacBook purchased after September 10, 2019 is eligible to activate a one-year free subscription.
Monthly subscription fee: RM19.90
Free trial: Seven day trial
Type of content: TV series, dramas, movies, documentaries, kids’ shows, and original comedies
Platforms and devices: Apple TV+ on iPhone, iPad, Apple TV, iPod touch, Mac, selected Samsung smart TVs, PlayStation, Xbox, Roku and Amazon Fire TV
Simultaneous streams: Six devices
Features:
- Family sharing plan
- Ad-free
- Original shows and films
- Free one-year subscription for a newly-purchased apple device
- Download and watch the content offline
6. Amazon Prime Video
Prime Video houses thousands of movies and TV shows which can be streamed and downloaded through the Prime Video app.
Prime Video is a video streaming service available for Amazon Prime members. All registered Amazon Prime members have access to the content, which includes movies and TV shows of different genres.
Amazon Prime Video charges you in U.S. dollars, therefore the price you pay in Malaysian Ringgit each month may differ according to the exchange rate.
Monthly subscription fee: $5.99
Free trial: 30-day trial
Type of content: TV series and movies
Platforms and devices: Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, and Smart TVs
Simultaneous streams: Three devices
Features:
- Extensive library of movies and TV shows
- Downloads for offline viewing
- Unlimited stream
- Parental controls
- Ad-free
7. Disney+ Hotstar
Watch Disney+ Originals, Marvel movies, Disney favourites, and more on Disney+ Hotstar.
Housing Star Wars movies, timeless classics, and the Star Wars series you are yet to catch up on, Disney+ is perfect for any crowd and age group. It’s also only RM5/month is you’re subscribed to Astro! What’s more, you’ll be able to catch up on your must-watch Asian dramas on the app too.
Monthly subscription fee: RM54.90/3 months
Free trial: Not available
Type of content: TV series and movies
Platforms and devices: Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, and Smart TVs
Simultaneous streams: Two devices
Features:
- Extensive library of movies and TV shows
- Downloads for offline viewing
- Live sports stream
- Unlimited stream
- Parental controls
- Ad-free
8. HBO GO
Aside from cult-favourite blockbusters and Warner Bros movies, HBO GO houses nostalgic TV series, such as Friends and Gossip Girl.
As it allows up to 5 devices per subscription, HBO GO is perfect for groups or families who want to tune into their favourite TV series and movies. Featuring all the Warner Bros content and k-dramas you could want, this subscription is a must-have!
Monthly subscription fee: RM34.90/month OR RM69.90/3 months
Free trial: Not available
Type of content: TV series and movies
Platforms and devices: Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, and Smart TVs
Simultaneous streams: Five devices
Features:
- Extensive library of movies and TV shows
- Downloads for offline viewing
- Unlimited stream
- Parental controls
- Ad-free
| Service | Free trial | Monthly subscription fee | Type of content | Free content | Compatible devices |
| Netflix | ✖ | RM17 (Mobile)
RM35 (Basic) RM45 (Standard) RM55 (Premium) |
TV series, movies, documentaries, kids’ shows, stand-up comedy specials, anime, and international programming. | Not available | Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, Apple TV, and Smart TVs. |
| iflix | ✔ | RM10 (VIP) | TV series, movies and kids’ shows. | Available with ads | Android, Apple, laptop, desktop, mobile browser, and smart TVs. |
| Viu | ✔ | RM10 (Premium) | TV series, variety shows, and movies. | Available with ads | Android, Apple, laptop, desktop, mobile browser, and smart TVs. |
| Dimsum | ✖ | RM8 (VIP)
RM 13.90 (VIP Family) |
TV series, dramas, movies, documentaries, kids’ shows, education. | Available with ads | Android, Apple, laptop, desktop, mobile browser, and smart TVs. |
| Apple TV+ | ✔ | RM19.90 | TV series, dramas, movies, documentaries, kids’ shows, and original comedies. | Not available | Apple TV+ on iPhone, iPad, Apple TV, iPod touch, Mac, selected Samsung smart TVs, PlayStation, Xbox, Roku and Amazon Fire TV. |
| Amazon Prime Video | ✔ | $5.99 | TV series and movies. | Not available | Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, and Smart TVs. |
| Disney+ Hotstar | ✖ | RM54.90/3 months | TV series, live sports, and movies. | Not available | Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, and Smart TVs. |
| HBO GO | ✖ | RM34.90 | TV series and movies. | Not available | Android, Apple, Windows, Roku, PlayStation, Xbox, Google Chromecast, Amazon Fire TV Stick, and Smart TVs. |
Overall comparison
The best streaming service is more than just which platform has the best shows; for real value for money, you need to assess the overall experience, how often they release and add new content to their library, the cost of subscription, availability of free trial, type of content offered and supported devices.
Here’s the side-by-side comparison of each streaming service we listed above:
Consider using the free trial option before subscribing
Since almost all the streaming video services offer free trial periods, it’s best to sign up for the trial option before going on full subscription. Take the chance to explore the platform and enjoy the experience as a user before going premium. Just make sure to cancel if you don’t want to continue with the service as you will be charged automatically once free trials are over.
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#CHInsights – How Does Credit Accessibility Impact Financial Inclusivity?
- By CompareHero.my
- January 12, 2021
Greater financial inclusivity would open more opportunities for people to build savings, make investments and have access to credit. In this episode of #CHInsights, we take a deeper look at how credit accessibility affects the state of financial inclusivity in a county.
Contents
In a world still ravaged by income inequality, poverty, and socio-economic issues, country leaders and organisations have identified financial inclusion as the key to overcoming these challenges. But what is financial inclusion?
According to the World Bank, a society that has high financial inclusion is one where individuals and businesses have access to useful and affordable financial products and services that meet their needs – all delivered responsibly and sustainably.
For the world’s poorest to have a chance at leading high quality of life, they must first experience economic and social progress. These developments stem from an inclusive financial system that fulfils the needs of people from all income levels, according to the World Bank.
“Financial inclusion is a building block for both poverty reduction and opportunities for economic growth, with access to digital financial services critical for joining the new digital economy,” the World Bank states.
The World Bank also states that financial inclusion is what facilitates day-to-day living, and helps families and businesses plan for everything from long-term goals to unexpected emergencies.
Those living in a financially inclusive country are more likely to have access to financial services and products like savings, credit and insurance, invest in education or health, manage risk, and weather financial shocks, all of which can improve the overall quality of their lives.
Communities can go from unserved to served when they have a transaction account and use a broad range of financial services. (Image source: The World Bank)
Malaysia has one of the highest financial inclusion rates in the world as 92% of its population have access to a deposit account, according to a report by the World Bank. This also means they can save, withdraw money, access automated teller machines (ATMs), and carry out payments through electronic means nationwide.
Despite this achievement, Malaysia still – like many other countries – face challenges when it comes to tackling the issue of financial inclusion: in this case, reaching out to the remaining unserved population, a large part of which comprises foreign workers and their families, some of whom are undocumented workers, according to the World Bank report.
Another report by Bank Negara Malaysia which measures financial inclusion in the country revealed that 8% of Malaysians do not have access to the services of a bank or a similar financial organisation. In simpler terms, we call these individuals, unbanked.
From the 8% in the population that are unbanked, 55% are women, 46% are aged 15-24 years old, and 86% have no income and low income. (Image source: Bank Negara)
From 2011 to 2015, Malaysia saw some improvement in accessibility and satisfaction of financial services, but still only produced a moderate take-up of financial products.
According to the figure above, 91% of the country’s adult population have deposit accounts, 25% have financing accounts and 16% have life insurance or takaful policies.
Related: Ultimate Guide To Credit Scores
Why is credit important to the economy?
When people and businesses can borrow money, transactions will take place and this helps a country’s economy grow.
Credit allows households and individuals to purchase things they need, including expensive items like houses and cars. Transaction accounts, a gateway to other financial services, allows people to store money, and send and receive payments.
Some Malaysians don’t even have access to financial tools and services.
But due to lack of customer data or limited history to assess creditworthiness, many people around the world, particularly those from the most vulnerable among us, are not able to benefit from credit; and without a credit score, they are unable to get access to financial tools or products that could help them advance economically. This is what could lead them to turn to informal and risky channels (such as loan sharks) despite the high-interest rates.
According to the Global Findex by the World Bank, an estimated 1.7 billion adults worldwide (or 31% of adults) still don’t have a basic transaction account, although 1.2 billion people have opened a financial account since 2011. The index surveys more than 150,000 people in some 140 countries. From 1.7 billion unbanked adults, about half of consist of women in poor households in rural areas or out of the workforce, according to the World Bank.
Findings from the World Bank reveal that lack of money could be the key barrier to account-opening. This insinuates that financial services aren’t designed or affordable enough for low-income users. Other barriers cited include distance from a financial service provider, lack of necessary documentation papers and lack of trust in financial service providers.
Related: 4 Ways A Bad Credit Score Can Impact Your Life (And How You Can Fix That)
How do we drive credit accessibility to create a more financially inclusive society?
On a global scale, financial inclusion is the enabler for seven of the 17 Sustainable Development Goals; it is also an objective pursued by many stakeholders across the globe, from political and business leaders to financial institutions and advocacy groups.
The World Bank Group (WBG) put forward an aggressive target to reach Universal Financial Access (UFA) by 2020, an initiative that envisions giving all individuals – women and men alike – as well as businesses, access to the financial services they need, regardless of income. This noble goal started in 2013, with the target of extending financial services access to one billion adults who do not currently have such options.
The World Bank and the International Monetary Fund (IMF) also developed the Financial Sector Assessment Programs (FSAPs) to help strengthen the countries’ overall financial systems and cover a range of financial sector issues. The World Bank came up with an integrated and unified approach to help these countries achieve financial access and responsible financial inclusion. It focuses on nine intertwined areas:
- National financial inclusion strategies
- Modernize retail payment systems and government payments
- Reform national payments systems (NPS), including remittance markets
- Diversify financial services for individuals
- Leverage technology for financial inclusion
- Strengthen competition and expand access points
- Financial consumer protection
- Financial capability
- Financial inclusion data
For a more thorough understanding of these nine focus areas, you can refer to the World Bank.
As we previously wrote, one way to promote financial inclusion, as identified by BNM, is through the establishment of digital banks, as serving the underserved and unserved in retail and SME are among the key requirements for organisations interested in establishing digital banks, according to a framework by BNM.
Related: Digital Banks Are On the Rise In Malaysia – What Does This Mean for You? Experts Weigh In
Alternative scoring could be the solution to financial inclusion
Source: Data from non-traditional sources such as mobile and social applications are now considered when assessing one’s credit risk.
According to Development Asia, alternative credit scoring uses data on consumer behaviour from digital platforms and applications to assess risk. Alternative credit scoring also uses combined data from multiple sources, like airtime and mobile money usages, bills payment history, and social media usage to assess one’s credit risk.
Alternative credit disrupts the high cost of credit assessment and verification by using an individual’s preferences and habits, as an alternativee way to evaluate a borrower’s credit risk profile.
Another alternative is AI-based credit scoring systems. Finextra describes AI-based credit scoring systems as having the “capacity to unearth hidden relationships between variables that are not always apparent to traditional credit scoring systems, as well as conducting a more nuanced evaluation of data.”
The advantage of AI is it provides complex, in-depth rules. Unlike traditional credit scoring models that are based on simple rules, often rejecting borrowers who may otherwise be credit-worthy.
For some time now, alternative credit scoring is seen as a viable option to serve the unbanked. One such method is through the creation of digital scorecards across different verticals (like ride-hailing or e-commerce companies).
Before you can work towards getting an excellent credit score, you need to be able to have access to financial services and products, first.
According to CredoLab, digital credit scoring models (those that blend alternative data with traditional data) have proven to provide faster and more efficient credit scoring. According to them, fintech and online lending marketplaces Rubique and Bankbazaar, have seen a jump in customer loan approval ratio, going from 40-45% to 65% after using digital scoring.
In Southeast Asia, Grab Finance partnered with Credit Saison on a joint venture that provides loans and lending services to millions of unbanked and underbanked consumers, micro-entrepreneurs and small businesses across Southeast Asia.
“Grab Financial Services Asia taps into Grab’s huge cache of customer data gathered from the Grab app, which processes over a billion transactions annually, to provide a sophisticated, alternative resource for measuring credit ratings,” Grab said in a statement.
“By analysing behaviour and transaction data from the app, such as transport movements, geo-location, and GrabPay transaction data, the company can offer alternative data points to assess creditworthiness, filling the gap left by traditional credit scoring methods,” it said.
What is the future of alternative credit?
Due to the rise in mobile penetration in Southeast Asia, we can expect to see further growth of e-wallets and digital banks, both possible drivers of alternative credit scoring in the region.
As part of our #CHInsights series, we try to break down complex concepts and ideas into easy-to-understand reads, yet remain insightful.
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EPF i-Sinar Category 2 Application Opens Today – Here’s How You Can Apply
- By CompareHero.my
- January 11, 2021
Through the Employees Provident Fund’s (EPF) i-Sinar facility, members can withdraw up to RM60,000 from their Account 1. Category 1 members have been able to submit their applications since Dec 1, 2020, while members under Category 2 can start applying today. Here’s a quick step-by-step application guide.
Need extra cash to cover your living expenses during troubled times? You might want to consider applying for the EPF i-Sinar withdrawal facility, which has enabled EPF members who were affected by job losses and pay cuts to withdraw parts of their retirement savings.
According to The News Straits Times, the EPF has approved 2.5 million applications as of January 4. Just like these successful applicants, you too can benefit from i-Sinar. However, before starting your application process, you should check your eligibility status and the amount of money you can withdraw.
Contents
Are you eligible for i-Sinar?
According to the EPF, contributors who are applying for the i-Sinar facility are divided into two categories:
1. i-Sinar Category 1
Since December 21, 2020, the EPF has been accepting i-Sinar applications from members who fall under Category 1. (Image source: EPF)
You belong in Category 1 if…
- You are an EPF member who has not contributed to the EPF for at least two consecutive months, OR
- You are still working but your base salary has been reduced by 30% or more since March 2020.
You don’t need to attach any supporting documents along with your application, as the EPF can verify your data based on its internal records.
Since December 21, 2020, the EPF has been accepting i-Sinar applications from members who fall under Category 1. So if you are eligible, feel free to apply now at the official iSinar portal.
2. i-Sinar Category 2
If you are in Category 2, you can start applying for the i-Sinar facility from January 11, 2021 (that’s today!). (Image source: EPF)
Meanwhile, EPF members who belong in Category 2 are those who have experienced a 30% reduction or more in their total income since March 1, 2020. (Your total income would include your base salary and other benefits such as allowances and overtime.)
If you are in Category 2, you can start applying for the i-Sinar facility from January 11, 2021. The EPF will also require you to submit the following supporting documents:
- Your salary slips before and after the income reduction, and
- A notice from your employer, which states that your allowances/overtime claims have been suspended or reduced
EPF members who are unable to provide these documents can submit other relevant documentation such as bank statements or an employer’s written acknowledgement for consideration.
How much money can you withdraw?
If you have an EPF Account 1 savings balance of RM100,000 or less, you can withdraw up to RM10,000 and the payments to you will be staggered across six months. Once approved, you can receive up to RM5,000 for the first payout.
For members who have more than RM100,000 in their Account 1, they can withdraw up to 10% of their savings or up to RM60,000 – whichever is lower. The payments will be staggered across six months, and you could receive a maximum of RM10,000 for your first payout.
Related: How To Withdraw EPF Account Savings For Personal Use?
The EPF has prepared an easy-to-understand guide on how to apply for i-Sinar. (Image source: EPF)
Now that you have all the facts, let’s start your application process!
It’s easy to apply for i-Sinar. Just follow this step-by-step guide from the EPF:
1. Visit the official iSinar website at https://isinar.kwsp.gov.my. Select “Permohonan Baharu” (New Application).
2. Select “Yes” if your base salary has been reduced by 30% or more since 1 March 2020, or you have not contributed to the EPF for at least two consecutive months.
3. Enter your IC and mobile number.
4. Click “Continue”.
5. A menu will pop up, prompting you to enter your One-Time Pin (OTP). At around the same time, you will receive an OTP via SMS on your mobile phone. Enter your OTP at the pop-up menu.
6. On the following screen, use the slider to set your preferred withdrawal amount from Account 1.
Move the slider from left to right to set your preferred withdrawal amount from Account 1. (Image source: EPF)
7. Use the next slider to set your preferred first payout amount. The i-Sinar tool will automatically adjust your payout for the subsequent months.
Move this slider to set your preferred first payout amount. (Image source: EPF)
8. Complete your personal details on the next screen.
9. Enter your bank account details for the payout.
10. Enter your salary details (before and after the income reduction). Remember to attach supporting documents such as your salary slips and a notice from your employer about your allowance/overtime cut.
11. Double-check your details before clicking “Submit”.
12. The EPF has received your application. You can check your application status in 21 working days.
Related: How Much Should You Have In Savings by The Age of 30?
How to check your application status
After waiting for 21 working days, it’s time to check your i-Sinar application status. Visit the “Semak Status Permohonan” (Check Application Status) webpage and enter your IC as well as mobile number. If your application has not been approved yet, the following page will show “Permohonan anda sedang diproses” (Your application is still in process).
Hope in the dark
We hope the i-Sinar facility will be able to ease your financial burdens in these uncertain times. Good luck with your application!
Read More
How Will Car Modifications Affect Your Car Insurance Policy?
- By CompareHero.my
- January 8, 2021
A modified car insurance premium is usually higher than the normal one. Before modifying your car, it is best to take a look at how the changes can affect the cost of car insurance. But what kind of car modifications are we talking about here? Read below to find out!
Have you ever thought of pimping up your ride with new turbo engines? And change those boring car rims to the new custom ones? Although it is tempting to customise your car, you have to be aware that these modifications can affect your car insurance premium.
While you’re applying or renewing your insurance policy, it is important to let your insurer know that you have modified your car. Any attempt to make the car look nicer or perform better will not only increase its value, but also the risk of vehicle theft. By informing your insurance company, you can rest assured that your car will be fully protected. The insurance company will increase the insurance premium accordingly to ensure that every aspect of the modifications you made to the car is covered.
Contents
- What is car modification and how does it affect car insurance?
- What are the different types of car modifications?
- Modifications to private vehicles according to Jabatan Pengangkutan Jalan (JPJ) standards
- What happens if you don’t declare car modifications to your insurer?
- Consider the pros and cons before modifying your car
What is car modification and how does it affect car insurance?
Car modifications are the changes made to a personal vehicle. It can be any major or minor modifications that are done for aesthetic purposes or to enhance the car’s performance. Car insurance companies consider a car modified when you replace, add or remove a vehicle’s parts or systems that are different to the manufacturer’s original specifications.
Modifications to your car could increase the risks of theft. For example, a modified car with expensive parts like custom sport rims and a spoiler can be more attractive to thieves. The local authority once busted a syndicate that preyed on luxury car owners and sold the stolen car parts in the market. Since the purpose of your insurance coverage is to cover those risks, additional costs will be added to your premium.
Related: What To Do When Your Car Is Stolen And How To Prevent It?
What are the different types of car modifications?
Car modification can be divided into three main categories which are:
1. Performance modifications
Performance modifications are made to upgrade the car’s performance, which include:
- Brakes upgrade
- Transmission upgrade
- Turbocharger
- Suspension upgrade
- Exhaust system
The turbocharger spins up to 150,000 rotations per minute (rpm), which is about 30 times faster than an ordinary automobile engine.
2. Functional modifications
Functional modifications are done to change or add certain functions to the vehicle such as:
- Air conditioning system
- Navigation system
- Parking sensors
- Additional car lights
Not only will a GPS car tracker help navigate your journey, but you can also use it to trace a stolen car, allowing for faster recovery.
3. Aesthetic modifications
Aesthetic modifications are made to improve the appearance of the vehicle, these include:
- Front and rear bumpers
- Rooftop vents
- Paint jobs
- Underbody neon lights
- Tinted windscreens
- Back bumper reflector lights
- Tinted windows
Having your car repainted can be a good investment as it will add the resale value of your car. Common car colours like black, white and grey are easy to sell compared to bright colours like red, yellow and pink.
Related: #BreakingItDown – 8 Things That Affect Your Car’s Resale Value
Modifications to private vehicles according to Jabatan Pengangkutan Jalan (JPJ) standards
Types of modifications that can be performed without JPJ approval
These modifications do not harm and ruin your car’s performance; hence, they’re legal as long as they adhere to the specified guidelines here.
1. Spoiler and side skirt installation
The purpose of spoilers and side skirts are to increase the vehicle’s grip on the road by decreasing the aerodynamic drag.
2. Door visor installation
Door visors or also known as window deflectors are automobile accessories attached to the sides of the car windows to protect the inside of the car from rain.
3. Front/rear bumpers and bull bar installation
Bumpers and bull bars are the curved bars across the front of a vehicle. They protect the car from getting scratched or dented and prevent any physical damage to the car front.
4. Installation of larger rims and tyres
Modify your wheels with a custom set of stylish car rims.
5. Sunroof installation
Any parts that are installed to your car after the car was produced are called aftermarket items. You can get an aftermarket sunroof at any of the local workshops.
6. Roof rack installation
If you plan to go on an adventurous road trip and have bulky items like bicycles, canoes or kayaks to bring with, a roof rack allows you to put these objects on the roof without having to rent and drive a pickup truck.
7. Manual to automatic transmission change
If you’re tired of driving a manual car, it is possible to change it to automatic transmission instead of purchasing a new auto car.
8. Tonneau cover installation
A tonneau is used to cover the truck or cargo back. It protects the load and improves aerodynamics of the vehicle. (Image source: Auto Accessories Garage)
9. Side step and snorkel installation
A side step is located at the foot of the door to support people getting in and out of a vehicle. A snorkel is more useful for pickup trucks that often go on adventurous drives as it helps prevent water, dust and other microparticles from entering the engine.
10. Spotlight installation
A spotlight beam has the capability to illuminate the entire dark road ahead. It can be useful when you’re driving along a dark highway.
Types of modifications prohibited by JPJ
These modifications mostly involve major changes to the car’s performance and appearance, which can compromise road and car safety rules. Here are the modifications that you should avoid:
1. Body kit installation that changes the vehicle’s identity
A body kit is a set of modified car body parts or additional components installed on the vehicle.
2. Inner roll cage installation
You will find an inner roll cage mostly in race cars. It is designed to protect the driver and passenger from being injured or killed in an accident.
3. High Intensity Discharge (HID) lights retrofitting
Retrofitting and modifying vehicles with HID lights can disturb the sight of other drivers on the road.
4. Changes to the drivetrain
The drivetrain is a group of vehicle parts that works with the engine to move the wheels and drive a car into motion.
5. Blinking lights installation (except for signal lights and hazard light)
These self-installed ambulance police lights can be easily purchased online. If you’re caught using them on the road by the authority, you could be fined. (Image source: AliExpress)
6. Any additional lights installation
A neon underglow will make your car look stunning, but you don’t want to get a ticket for that. (Image source: Urban Neon Car Lights)
7. Installation of rhythmic horns or two-tone horns
The public can be affected by the unnecessary loud sounds produced by these horns. (Image source: AliExpress)
8. Window tinting rules
The Ministry of Transport has issued updated window tinting regulations in Malaysia, which are as follows:
- Tinted window on windshield with tinting level limit of 70%
- Tinted window on rear windows with tinting level limit of 50%
What happens if you don’t declare car modifications to your insurer?
As a policyholder, you are responsible to inform your car insurance company that you’ve modified your car. If you fail to do so, your policy could be void or invalid when you need to make a claim since you did not provide accurate information to the insurer. Be sure to declare at the point of application so there will be no issues when filing for claims later. If you have any doubts, it is always best to clarify with your insurer before getting your car modified.
Related: #WhatIWishIKnew – What Happens If You Don’t Pay Your Car Insurance Premium?
Consider the pros and cons before modifying your car
Modifications enhance the overall performance of your vehicle, but only if they’re done legally. Prohibited modifications can adversely affect your car’s safety and performance. It’s best to seek help from experts because once the modifications are done, in most cases, there is no going back or you will probably end up wasting a lot of money.
The authority has the rights to issue summons for excessively modified cars, so make sure to read and understand the guidelines provided by the JPJ.
